Posted by Roadie_MD on 3/13/11 12:35pm
Msg #376030

charging interest

Does anyone know the formula for charging interest on past due invoices? Is the standard 1.5%? If there is a calculator out there that someone would kindly link I would greatly appreciate it.

Reply by Linda_H/FL on 3/13/11 12:51pm
Msg #376031

Check your state laws...it's state regulated

and probably has to be disclosed up front

Reply by Roadie_MD on 3/13/11 1:01pm
Msg #376034

Re: Check your state laws...it's state regulated

Yes, I have been doing some research and I believe you are correct. And one and a half percent (the standard) really doesn't add up to much $$ either.

Reply by Les_CO on 3/13/11 5:13pm
Msg #376051

Forget the interest, charge a late charge. (Kind of like an ‘insufficient funds’ charge.)

Reply by Mike Goodey on 3/13/11 6:25pm
Msg #376056

There you go...just like the banks and credit card companies! A LATE FEE!

Reply by HARRY_PA on 3/14/11 7:18am
Msg #376081

Charging & collecting are two different things.

Harry

Reply by ikando on 3/14/11 3:42pm
Msg #376135

Harry, you're right. But if you go to court and win, then the late fees are due and payable also. Sometimes adding the late fee causes some response before going the suit route.

Reply by Victoria_NJ on 3/15/11 2:21pm
Msg #376219

Late fees must be pre-established

You need to immediately notify your client that you will be charging them late fees and give them ample time to respond and pay.

If charging a late fee (or interest for that matter) was not discussed when you contracted with the client, you may have a hard time enforcing (and forcing) them to pay it and may or may not get restitution for late fees if you had to sue.

And, you may or may not legally be entitled to collect either depending on your state's laws.